Information update on gross embezzlement from SpareBank 1 SMN

02 Feb 2023 09:00 CET

SpareBank 1 SMN reported on 19 January 2023 a hired replacement employee to the
police for gross embezzlement. The offence was brought to light by the bank’s
own control systems. The police investigation confirms that a total close to NOK
75 million has been embezzled. About NOK 50 million of this sum is considered to
have been lost. The bank has insurance cover against economic crime, and no
customers are affected.

The accused has been employed as a hired replacement at SpareBank 1 SMN’s head
office since 2020. Routine checks were performed in connection with his
appointment.

“The bank has fallen victim to serious economic crime. Moreover, a gross breach
of trust has been committed inasmuch as the accused has misused his access to
systems for his own gain and in addition manipulated our control functions,”
says executive director Rolf Jarle Brøske at SpareBank 1 SMN.

The bulk of the embezzlement occurred over a brief period before being detected
and reported to the Police. The funds involved were transferred to accounts with
other banks in Norway, and onwards out of the country. They were then invested
very largely in securities and financial instruments carrying particularly high
risk.

“In the past two weeks the bank has worked closely with the Police to assist in
the investigations, and to secure as much of the funds as possible. We must
unfortunately note that a large portion of the embezzled funds has been lost
after what appears to be wild speculation abroad”, says Mr Brøske.

The Police investigation, which matches the bank’s own enquiries, shows that the
embezzlement totals just under NOK 75 million. Because the accused returned part
of that amount to SpareBank 1 SMN before his arrest, the net amount taken out of
the bank comes to just over NOK 66 million. The Police have secured a little
over NOK 15 million in Sweden. Based on the information now known, just over NOK
50 million of the embezzled amount has been lost.

SpareBank 1 SMN has insurance cover against economic crime, including
embezzlement. The insurance policy carries a deductible of NOK 5 million.

“We have now established a good overview of the course of events, and have taken
a number of immediate measures. Moreover, the bank has a comprehensive effort
under way to pinpoint further measures. We also have a good dialogue with
Norway’s Financial Supervisory Authority,” says Mr Brøske.


Contact information:

For the media:
Executive director Rolf Jarle Brøske on +47 911 12 475

For investors:
CFO Trond Søraas on +47 922 36 803

More information:
Access the news on Oslo Bors NewsWeb site